(Comprehensive Problem) Suppose that you are in tho fall of your senior year and are facod with the choice of eithor getting a job when you graduato or going to law school, Of course your choice is not purely financial. However, to make an informed decision you would like to know the financial implications of the two alternatives. Lot's assume that your alkematives ant as follows: If you take the "got a job" roule you expect to start off with a salary of $40,000 per year. There is no way to predict what will happen in the future, your best guess is that your salary will grow at 5 percent por year until you retre in 41 yoars. As a law student, you will be paying $20,000 per year tuition for each of the 3 yoars you are in graduate school. Howaver, you can then expect a job with a starting salary of $80,000 per year. Moreover, you expect your salary to grow by 9 percent per year until you retire 34 ynars later. Clearly, your total expected Ifetime snlary will be higher if you become a lawyer. However, the additional future salary is not froe. You will be paying $20,000 in tuition at the begirning of each of the 3 years of law school, In addition, you will be giving up a little more than $126,000 in lost income over the three years of taw achook: $40,000 the fint yoac, $42.000 the secon year, and $44,100 the third year. a. To start your analysis of whether to go to law school, calculate the present value of the future eamings that you will realize by going directly to work, assume a discount rate of 11 percent. b. What is the present value today of your future earnings if you decide to attend law schooly assuming a discount nato of 11 percent? Remernber that you will be in law school for 3 yoars before you start to work as a lawyer. (Hint: assume that you are paid at the end of each year no that your first nalary payment if your decide to go to law school occums 4 yearn from now.) a. What is the present value of the future eatnings that you will realze by poing directly to work, assuming a ditcount rate of 11 percent? (Round to the nearest cent.)